WASHINGTON (AP) — More than 20 Democrat-led states are challenging a new Trump administration policy designed to block nonprofit and government workers from student loan cancellation programs if federal officials determine their employer has a 'substantial illegal purpose.' This policy primarily targets organizations working with immigrants and transgender youth.
The lawsuit filed Monday in Massachusetts claims the Trump administration overstepped its authority by adding new eligibility rules to the Public Service Loan Forgiveness program, which is meant to provide loan forgiveness to individuals who serve in public sector roles or nonprofit organizations. The changes, according to the lawsuit, threaten job stability and increase shortages in crucial state workforces.
Leading the legal challenge are New York, Massachusetts, California, and Colorado. New York Attorney General Letitia James labeled the new rule as 'a political loyalty test disguised as a regulation,' arguing it is unjust to deny hardworking Americans debt relief based on ideological grounds.
A coalition comprising various cities, nonprofits, and labor organizations also initiated a separate legal challenge in Massachusetts, involving cities like Boston and San Francisco.
In response, Under Secretary of Education Nicholas Kent remarked on the 'unconscionability' of supporting criminal activities, emphasizing that the policy aims to prevent taxpayer money from supporting organizations allegedly engaged in terrorism, child trafficking, and harmful medical procedures.
Further, another lawsuit is anticipated from organizations such as the Robert F. Kennedy Human Rights advocacy group and the American Immigration Council.
The Public Service Loan Forgiveness program, established in 2007, encourages graduates to enter public service jobs by offering loan forgiveness after 10 years of qualifying payments. The recent policy changes could potentially exclude entire state governments, hospitals, and nonprofits from this critical financial relief, raising serious concerns about the implications for public sector employment across the country.
The lawsuit filed Monday in Massachusetts claims the Trump administration overstepped its authority by adding new eligibility rules to the Public Service Loan Forgiveness program, which is meant to provide loan forgiveness to individuals who serve in public sector roles or nonprofit organizations. The changes, according to the lawsuit, threaten job stability and increase shortages in crucial state workforces.
Leading the legal challenge are New York, Massachusetts, California, and Colorado. New York Attorney General Letitia James labeled the new rule as 'a political loyalty test disguised as a regulation,' arguing it is unjust to deny hardworking Americans debt relief based on ideological grounds.
A coalition comprising various cities, nonprofits, and labor organizations also initiated a separate legal challenge in Massachusetts, involving cities like Boston and San Francisco.
In response, Under Secretary of Education Nicholas Kent remarked on the 'unconscionability' of supporting criminal activities, emphasizing that the policy aims to prevent taxpayer money from supporting organizations allegedly engaged in terrorism, child trafficking, and harmful medical procedures.
Further, another lawsuit is anticipated from organizations such as the Robert F. Kennedy Human Rights advocacy group and the American Immigration Council.
The Public Service Loan Forgiveness program, established in 2007, encourages graduates to enter public service jobs by offering loan forgiveness after 10 years of qualifying payments. The recent policy changes could potentially exclude entire state governments, hospitals, and nonprofits from this critical financial relief, raising serious concerns about the implications for public sector employment across the country.
